identifying the internal and external factors in human resource planning

Human resource departments today have a more distinct, calculated position within organizations, and human resource strategy influences the bottom line. “One of the challenges for HR leaders is convincing executive leadership teams that human capital is one of the most important resources in which the company can invest” (Mayhew, 2014, p.). Subsequently, “this return on investment is an essential part of the argument for including HR as part of an overall business strategy” (Mayhew, 2014, p.). Human resource departments utilize the information given to them from company executives and leaders, coupled with their respective expertise on all things personnel, and they plan and implement staffing concerns for the betterment of the organization. From preparing job analysis, to comparing inventory and forecasting, it is the responsibility of human resources to consider the objectives of an organization and fulfill those goals while operating the specific planning relative to HR.

The CEO of this company began to take steps into making the company better. Both external and internal driving forces drove this change. The definition of these two terms needs to be looked at in order to understand what they were. External factors are the factors that occur outside the scope of the company or organization, for example, the economy. These factors are outside the influence of the company (Lindbald, 2014). On the other hand, internal factors are factors that occur within the scope of the organization and are within the control of the company.

Labour market competition, human resources must have business plans for the future for it to differentiate from other business’s within the industry. If a business

The assessment of internal factors analyze inside the physical confines of the organization. These factors are within the control of the organization. The internal assessment considers plan implementation, structure, culture, innovation, diversity, ethics, processes and technology. All of the factors can have a grave impact on the success of an organization. This is why the planning function of management is so important. Technology is rapidly changing, and for a business to succeed it must change with the time to adapt to

Human resource planning is the process through which organizations identify current and future human resources needed for an organization to achieve its goals. It serves as a link between human resources management and the organization’s overall strategic plan.

* Supply and demand; Organisation will have to look at supply of the talent. If the supply is low and demand high use of internal resources will be necessary by forward planning, supply of specialist training

The following report contains information on how Human Resources can support the organisation with both internal processes and meeting key business objectives.

This report identifies and assess factors that affect an organisations approach to both attracting talent and recruitment and selection. It also identifies and explains benefits of attracting and retaining a diverse workforce, describes methods of recruitment and methods of selection.

There are many internal factors that are used in an organisation and for Tesco; three main internal planning factors that they use for their organisation are new technology, work profiles and expanding to new markets.

B.J Smith (1992) describes that Human resource planning is the legal process of associating business strategy within Human resource practices. Human resource planning is the vital managerial function of an organisation. In Human resource planning various process are involved to gain the importance such as deciding the goals and objectives, estimating future employee requirements, Planning of job requirements and job description.

Recently, government has increasingly implemented labour markets policies to seek to encourage mature workers back to the labour markets, mainly concerning about the fiscal burden of the raging population (Weller 2007). The policies are underpinned by human capital theory which argue that company recruitment should focus more on the merits and ability of the applicant to achieve an efficient working way.

There are several important reasons of human resource planning that business organisation carry out regardless their size and it is important for the continuity of any business organisation to plan. However, in many business owners may not include human resource planning at the beginning of their business but later realise the importance of human capital and no business can survive without having competitive human capital.

It is necessary for human resource management to have a proper human resource planning. “Human resource planning involves planning that assure a firm’s needs for employees”, says Madura. She also includes that human resource planning consists of three tasks which are forecasting staffing needs, job analysis (Madura, 2007). Recruiting and selecting the right employee is not enough. There is a necessity to provide continuous training and development to the employees to be more productive and efficient. With great training, it enables the employees to be more innovative, creative, motivated and thus increase their working performance. Training can be through various types such as on the job training, off the job training, job rotation and scholarships.

Planning means looking ahead and chalking out the future courses of actions to be followed. The ongoing process of systematic planning to achieve optimum use of an organization 's most valuable asset is human resources department. The objective of human resource (HR) planning is to ensure the best fit between employees and jobs, while avoiding manpower shortages or surpluses. The three key elements of the HR planning process are forecasting labor demand, analyzing present labor supply, and balancing projected labor demand and supply.

Factors that happen in the external environment are known as external factors or influences. These will affect the main internal functions of the business and possibly the objectives of the business and its strategies. The main factor that affects most business is the degree of competition - how fiercely other businesses compete with the products that another business makes. The other factors that can affect the business are: